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Heeding Butler, Silver Standard will put cash reserves into physical silver
Maybe one of these years he'll figure it out....
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http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=5122536
NEW YORK, May 12 (Reuters) -- COMEX gold and silver
futures rose Wednesday but ended well below their highs,
as concern about U.S. international trade competitiveness
weakened the dollar and lifted precious metals.
The U.S. stock market also dropped after the Commerce
Department said the March trade deficit widened to $46
billion from $42.1 billion in February.
June gold ended up 50 cents at $377.70 an ounce after
trading $377.50 to $384.50. Still, its failure to close above
$380 was worrying, given its proximity to the seven-month
low hit Monday at $371.30.
"Given the trade deficit and given the dollar, I'm very
shocked and I think it's a very poor performance on behalf
of all the precious metals," said Graham Leighton, a vice
president of precious metals at Societe Generale.
"The only thing I can think, and this is pure speculation,
is that this is people getting their money out of
commodities in order to pay for equity losses or equity
margin calls," he said.
Estimated volume amounted to 62,000 contracts, up from
Tuesday's official count of 55,053 lots.
Spot gold ended at $377.75/8.50, up from the close at
$376.80/7.55. London's afternoon fix was at $382.20.
The growing imbalance between imports and exports
reflects the strength of the U.S. economy and rising
imported oil prices. At the same time, there is a risk
that declining net exports could be a drag on economic
expansion.
With oil prices at a 13-year high above $40 a barrel, gold
is favored as a hedge against inflation. But traders said
that barring any economic or political shocks, they will
continue to take cues from currencies, especially the euro.
"It looks like the funds came in buying on the close and
you had some follow-through buying overnight. People
are hungry to buy this stuff today," said a COMEX gold
broker, adding that gold dipped a couple of ticks right
after the trade number, before the dollar fell. "It looks
like people are confused by the number."
The euro rose to $1.1918/21 from the previous close at
$1.1861/67. On Wall Street, the Dow Jones industrial
average was down 1.47 percent at 9,872.
Physical buyers from Asia and the Middle East built
inventories when gold fell last week, putting a floor
under the market. They found gold too costly in the
$420s and $430s last month, when prices were near
15-year highs.
July silver ended up 4.2 cents at $5.565 an ounce,
near the bottom of a $5.73 to $5.555 range.
Spot silver rose to $5.54/57 from $5.51/54. Bullion
dealers fixed silver's price at $5.635.
NYMEX July platinum settled up $4.30 at $783.80
an ounce. Spot platinum last traded at $784.00/789.00.
June palladium went up $4.95 to $240.25 an ounce.
Spot was quoted at $238.00/243.00.
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http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
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